There are different ways by which wealth management firms in DC handle your money and assets. And while it’s not unusual for companies to specialize in a certain method, there are some practices that generally hold true for all:
One thing even the newest investor understands, or has at least heard of, about a portfolio is diversification – blending a variety of asset classes to reduce exposure to risk. But a well-diversified stock portfolio is just one component of putting together the best possible portfolio.
Basically, diversification among asset classes works by spreading your investments among various assets (e.g. stocks, bonds, cash, T-bills, real estate, etc.) with low correlation to each other. This allows you to reduce volatility in your portfolio, because different assets move up and down in price at different times and at different rates.
In simpler terms, it’s the wealth management equivalent of not putting all your eggs in one basket. There are many ways you can grow your wealth so there is no need to risk it all in one move. It is true that the higher the risk, the higher the rewards. However, it is just as true that you can do away with unnecessary risk as well. By partnering with a Washington DC wealth management firm like AOG Wealth Management, you will be introduced to a variety of alternative investments providing true diversification.
(Article Excerpt from “Diversification Beyond Stocks”, Investopedia, January 25, 2014 )
Securities offered through Kalos Capital, Inc. located at 11525 Park Woods Circle, Alpharetta, Georgia 30005 and/or TD Ameritrade Institutional Services located at 5010 Wateridge Vista Dr., San Diego, California 92121-5775. Investment advisory services offered through AOG Wealth Management, Inc. AOG Wealth Management, Inc. is neither an affiliate nor subsidiary of TD Ameritrade Institutional Services.